Question: Hey could you explain what method you use to solve this problem? Parvis Ind. wants to calculate its cost of equity. The company paid a

Hey could you explain what method you use to solve this

Hey could you explain what method you use to solve this problem?

Parvis Ind. wants to calculate its cost of equity. The company paid a dividend of 0.40 this year which is growing at 6% annually. It also has a risk premium rate of 796, WACC-10%, a terminal FCF growth rate of 8%, and the following expected free cash flows for the next 3 years: 2020 2021 2022 50 60 75 If Paris' current stock price is $12 and its average cost of debt is 4.5%, find 1) Rs using the bond risk premium model; 2) Rs using the discounted dividend model Parvis cost of equity using bond risk premium Parvis cost of equity using discounted dividend

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